a better day one

Viresh Maharaj

?EBwhat’s the point of

salarymedical aidbonuses

basket

recruitment feesproductivitymoraleintellectual property

retirementrecogniseattractretain

hygienenot communicated - not advertised- almost an after thought

?ABDICATIONa culture of

RULES

trusteesemployers

fund

EXPECTATIONS

they’ll takecare of me

DB

employees

50%REALISTIC?

INFORMENGAGE

influence day one

LEADERSHIP

responsibility

POWER

?FAIRLYtreating customers

treating employees

TCF

what’srequired?

fair treatment of employees is central to the culture of the company

the retirement architecture is sufficient to meet the retirement and risk needs of employees

employees receive regular and clear communication

1.

2.

3.

advice provided needs to be suitable and aligned with circumstances

the products provided need to functionas expected

unreasonable barriers should not exist between employees and their retirement fund.

4.

5.

6.

WHY?AIM

RULES

TCFlicense togo beyond

FUND GOVERNANCELAWS & COMPLIANCE

OBSTACLE

Benchmark survey

financial advice 87%want

financial advice!

Benchmark survey

43%have neverreceived advice

Benchmark survey

63%not preparedto pay for financial advice

annualretirement

week

• hire financial advisors

• flat cost paid by company

• no cost to employees

staff and spouses - retirement funding workshop

30 6040 50

BenefitStatement

customisedreplacement

ratio

providedbeforehand

retireepresentations

changecontributions

RETIREMENT

style of communication - understood by everyone

!STATSa few worrying

responses from employees

Benchmark survey

51% have not received any information relating to their retirement from their employer

90%have never revisited their original retirement decisions made when they first joined their employer

33% indicated that they fully understood their benefit statements

53% are not aware that they have life cover via their funds or group schemes

fund employees

communicationbreakdownGAP

51%

would contactHR for information

32%

would seek financial advice from HR at retirement

?HRwhat role - what skills?

provide accurate info

provide guidance to employees

provide financial advice

bridgingthe GAP

KPA•review fund statementannually

• formal retirement conversation

•affects KPA rating

TREATING EMPLOYEES FAIRLYTEF

creative

financial stress

advantage

TEFALIGNED

NATIONAL TREASURY

PROPOSALS

EMPLOYERSlead employees to a better day one